ED Cracks Down: Arrests Four Real Estate Promoters in Rs 2,004 Crore Homebuyer Fraud

The Enforcement Directorate (ED) has taken a significant step in the ongoing investigation into a massive homebuyer fraud case. Four promoters of a real estate group, Earth Infrastructures Ltd., have been arrested for their alleged involvement in a Rs 2,004 crore fraud affecting over 19,425 investors. The accused, Avdhesh Kumar Goel, Rajnish Mittal, Atul Gupta, and Vikas Gupta, were taken into custody on June 1 under the Prevention of Money Laundering Act (PMLA).

The four arrested individuals were produced before a special PMLA court in Delhi, which granted the ED a five-day custody for further interrogation. The ED's investigation has revealed that the group collected around Rs 2,004 crore from homebuyers and investors, promising timely delivery of residential and commercial units along with assured returns.

However, the investigation found that approximately Rs 467 crore of these funds were diverted or siphoned off through various group entities, related concerns, and individuals. Despite receiving substantial funds from the buyers and investors, the projects were either left incomplete or the possession of units was not handed over, causing significant financial loss to the homebuyers and investors.

The probe further revealed that part of the alleged proceeds of crime was used to acquire movable and immovable assets in the names of various entities and individuals linked to the promoters and directors of the group. The investigation stems from five FIRs registered by the Economic Offences Wing (EOW) of Delhi Police against Earth Infrastructures Ltd., its directors, and associated entities under various provisions of the Indian Penal Code.

Additionally, the Serious Fraud Investigation Office (SFIO) has filed a criminal complaint under Section 447 of the Companies Act against the promoters and directors of the group. Earlier in April, the ED conducted searches at premises linked to the Earth Group across Delhi-NCR. During these raids, officials seized cash worth approximately Rs 6.30 crore, jewellery valued at around Rs 8.78 crore, and property documents related to more than 100 immovable assets estimated to be worth over Rs 100 crore.

The arrests and seizures are expected to provide a significant boost to the ongoing investigation and bring much-needed relief to the thousands of affected homebuyers and investors. The ED and other law enforcement agencies are committed to ensuring that justice is served and that such fraudulent activities are curtailed in the future.